Sycamore Partners has agreed to pay $540 million to buy Ann Taylor, Lane Bryant and other store brands from Ascena Retail Group Inc., the brands’ bankrupt parent company said Thursday.
The proposed deal would also deliver the Loft and Lou & Grey brands to Sycamore, subject to approval from the bankruptcy court where Ascena filed for chapter 11 protection in July.
Ascena said Sycamore “has committed to retaining a substantial portion of the retail stores and associates” affiliated with the brands it is buying. As of late August, Ascena operated 1,500 stores throughout the U.S.
The company has already sold its Justice and Catherines brands out of bankruptcy as online-only businesses.
Permanent closures of retail stores in the country hit a record in the first half of 2020 as pandemic lockdowns and shoppers’ fear of disease curbed foot traffic, pushing Ascena and dozens of other retailers into bankruptcy.